Old commercial street in Beijing evolves into trendy consumption hub, showing potential of 'first-store economy'

On a recent weekday, THE BOX Youth Energy Center in Beijing's Chaowai street was bustling with crowds - mostly young people hanging out, many of whom brought their pets along to play.

Huo Wenting, a 24-year-old resident, has become a regular at the center known for "first stores" of iconic brands. "About 70 percent of the stores here are first stores of trendy brands you can't find elsewhere, like niche perfume shops, Hanfu [traditional Chinese clothes] fashion stores, and metaverse-themed coffee shops," Huo told the Global Times.

Chaowai street was once one of the oldest and biggest commercial streets in the Chinese capital, known for its electronics stores. Over the years, amid rapid urban development and the e-commerce boom, Chaowai street faced various challenges, including aging building infrastructure and a gradual decline in competitiveness.

However, thanks to an innovative project, after undergoing a series of upgrades in space, experience, and lifestyle, the storied commercial street has evolved into a new retail art experience space and has become a new consumption landmark in Beijing. On the national level, it exemplifies a nationwide campaign to boost retail consumption through innovation.

Within the first year of trial operations from September 2023 to October 2024, the center attracted nearly 15 million visitors, with nearly 80 percent of its members aged 15 to 25. It has drawn nearly 100 Chinese trendy brands, 85 percent of which are their first stores in Beijing, with total sales hitting 500 million yuan ($69 million) in one year, per a white paper co-released by the center at the end of October 2024.

In January, MINISO announced its exclusive role as the global offline retailer for the official merchandise of the video game Black Myth: Wukong. The Beijing MINISO LAND at THE BOX Youth Energy Center was among the first five stores in China to launch the peripherals, store manager Wang Cheng told the Global Times, noting "a high demand on the opening day."

Wang said that the store's exclusive offline launch, along with purchase-with-gift deals and limited-edition offers, also drew a large crowd of loyal fans from nearby provinces such as North China's Hebei and East China's Shandong.

In addition, driven by the recent success of the Chinese animated movie Ne Zha 2, its merchandise, like collectible cards and blind boxes, has seen a sales surge, with many items selling out within just 2 to 3 days of hitting shelves, according to Wang.

THE BOX Youth Energy Center draws not just youngsters like Huo but also the elderly.

Fu Lili, a resident in her 50s, has lived in the neighborhood for over 20 years, and she now visits THE BOX Youth Energy Center almost every week. "The arrival of new brands and young consumers has turned the once-quiet old street into a vibrant hotspot," Fu told the Global Times.

Fu pointed out that the center's pet-friendly vibe, trendy brands, and constantly refreshed products have even sparked a shopping itch among senior consumers like her. She dubs it a "cross-age connection" between the post-2000 crowd and the silver-haired crew.

The center has become a prime example of several new consumption trends in the Chinese market, including "first-store economy," "debut economy", and the "silver economy."

In the "first-store economy," a "first store" refers to the debut outlet of an iconic brand in its industry or a trendy new label in a specific area, including global, national, regional, or industry-first locations, or a new concept store from an established brand. This ties into the wider concept of the "debut economy," which encompasses companies launching new products and introducing innovative business models, services, and technologies, as well as establishing flagship stores.

Vast potential

Highlighting the vast potential of such trends, China's policymakers have called for actively promoting the "debut economy" in a resolution adopted at the third plenary session of the 20th Communist Party of China Central Committee. The Central Economic Work Conference held in December also urged active efforts to develop the "debut economy" as part of this year's key tasks to expand domestic consumption.

Among the latest policy initiatives, on February 17, five Chinese government departments unveiled a three-year action plan, urging local governments to capitalize on regional advantages to foster the "debut economy" and develop consumption landmarks, thereby creating new spending opportunities.

The rise of the "first-store economy" is creating a ripple effect, Hu Qimu, deputy secretary-general of the Digital-Real Economies Integration Forum 50, told the Global Times, noting "by revitalizing traditional shopping areas, it will help expand domestic demand and drive consumption upgrades, which are in line with the government's goal to boost consumption."

Many localities have also actively promoted the development of the "first-store economy." Official data showed that Beijing recorded 960 new first stores last year. The city will introduce a new round of construction plans for an international consumption center in 2025, with 800 first stores set to open throughout the year, according to official reports.

Other major Chinese cities are also seeing a "first-store economy" boom. According to Shanghai's information office, a total of 1,269 first-of-their-kind stores debuted in the city in 2024, the Xinhua News Agency reported.

As a vivid example, Shanghai Bailian ZX creative center is a mall featuring the culture of animations, comics, games, and novels (ACGN), and has seen multiple top Japanese content creators setting up their first China locations. Since opening in 2023, it has drawn over 15 million visitors by November 2024.

The Shanghai municipal government announced on February 21 that from March to May, a series of "First in Shanghai" events will be launched, aiming to elevate first stores in the city into flagship locations and regional headquarters.

Consumer confidence is poised to rebound significantly, driven by policy support and swift implementation, said Hu, adding that "online and offline channels will work together to unlock the consumption potential."

The launch of the first stores also shows the brands' long-term commitment to physical retail, spurring investment in related sectors like commercial properties and nearby infrastructure, which lifts market confidence and fuels economic growth, Hu further noted.

For some consumers, offline shopping also retains its unique attractiveness. "While we do shop online, young people crave more immersive experiences, which offer a deeper level of emotional connection that online shopping cannot replicate," Fu said, after recently watching young designers customize Hanfu on-site at THE BOX Youth Energy Center, where spectators can scan QR codes to pre-order next season's new designs.